To buy NVIDIA shares, you need a UK stock broker that offers access to NASDAQ-listed US stocks like Hargreaves Lansdown, AJ Bell or Interactive Investor, or a US stock broker like Interactive Brokers (they offer very low exchange rates and commissions.) However, as NVIDIA is one of the most liquid, volatile and popular shares among global investors, there are a few things you need to be aware of. This guide will explain how to buy NVIDIA shares and what to watch out for.
- Open an investment account with a stock broker that offers access to the NASDAQ stock exchange where NVIDIA is traded, like Hargreaves Lansdown, AJ Bell or Interactive Investor.
- You will need to fund your via a debit card or bank account (note some brokers convert GBP into USD straight away, other’s do it at the time of trade).
- Search for NVIDA shares with the epic symbol “NVDA” (they are also often on the most popular stocks list).
- Enter the number of shares you would like to buy (some platforms also let you enter a monetary amount and round the amount of the shares down to the nearest whole one).
- Click buy and you will own NVIDIA shares.
As NVIDIA shares are traded in USD, if you deposit GBP into your account you will have to convert it into US Dollars. Somer brokers like eToro only offer accounts in USD and convert your funds directly in to USD as soon as you deposit funds. This can be more convenient, but gives you less control. Other brokers like IG, let you keep funds in GBP, USD or EUD, so you can decide when best to convert funds. Whilst others like Hargreaves Lansdown and Interactive Investors, convert funds at the time you trade.
⚠️What to watch out for! Volatility
As NVIDIA shares are traded in USD, if you deposit GBP into your account you will have to convert it into US Dollars. Somer brokers like eToro only offer accounts in USD and convert your funds directly in to USD as soon as you deposit funds. This can be more convenient, but gives you less control. Other brokers like IG, let you keep funds in GBP, USD or EUD, so you can decide when best to convert funds. Whilst others like Hargreaves Lansdown and Interactive Investors, convert funds at the time you trade.
| US Stock Buying Platform | US Commission | FX Rate | ISA | SIPP | Our Rating | More Info |
|---|---|---|---|---|---|---|
 | £11.95 | 1% - 0.25% | ✔️ | ✔️ | See Offer Capital at risk |
|
 | £7.99 | 1.5% - 0.25% | ✔️ | ✔️ | See Offer Capital at risk |
|
 | 0.5 cents per share | 0.02% | ✔️ | ✔️ | See Offer Capital at risk |
|
 | £9.95 | 0.50% | ✔️ | ✔️ | See Offer Capital at risk |
|
 | 20 cents per share | 0.5% | ✔️ | ✔️ | See Offer Capital at risk |
|
 | £8 | 0.5% | ✔️ | ❌ | See Offer Capital at risk |
As of 22/09/2023 16:00 buying one NVIDIA share costs $416.1. However, as well as the $416.1 cost of buying the shares you will also have to pay any relevant tax, commission when you buy and sell shares, custody fees for holding your shares on your account and foreign exchange fees for converting GBP into USD. You also have to consider the difference between the bid price (the price at which you sell shares) and the offer price (the price at which you buy shares). These fees vary depending on what sort of account you open, and with what broker.
As of 22/09/2023 16:00, the current NVIDIA share price is $416.1 which is a change of 5.93 or 1.45% from the last closing price of 416.1 with 47,923,631 shares traded giving NASDAQ:NVDA a market capitalisation of $1,027,767,000,000. The most recent daily high has been 421.15 and daily low 412.31. The NASDAQ:NVDA share price 52 week high has been 502.66 and the 52 week low 108.13. Based on the most recent NASDAQ:NVDA share price opening of 416.1, the current NASDAQ:NVDA EPS (earnings per share) are 4.14 and the PE (price earnings ratio) is 100.52.
Nvidia (NVDA:NASDAQ) stock is having an incredible run in 2023. Year to date, shares in the chip designer are up more than 220%.
Is the stock still worth buying after this impressive run? Potentially…
Nvidia (NVDA US ) is up by +222% ytd, and its market cap has comfortably exceeded $1.0 trillion.
The GPU chipmaker reported Q2 earnings after the close and frankly it smashed it, reporting EPS of $2.70 vs estimates for $2.07, and guided significantly higher on revenues for the coming quarter.
Trading at $433, before earnings, and thus below the consensus target price of $500 per share. Nvidia have traded up to $509 in the pre market session this morning. Nvidia trades on trailing 12 month PE ratio of 214 times, however the all important forward looking ratio has come into 66.9 times post earnings.
Generative AI is a catalyst for change however the hype had far exceeded any real-world benefits.
However analysts are now talking about tidal wave of spending on technology in which Nvidia could be a major beneficiary; some have raised their price target to $1100.
IS NVIDIA a buy, hold or sell?
Potentially, as they are powering the AI revolution so there is justification for Nvidia’s share price strength.
Nvidia is the most dominant player in the artificial intelligence (AI) chip space, with a market share of around 80%. Its products – such as its H100 graphics processing unit (GPU) – are used by nearly all of the major players in AI including Google, Microsoft, and ChatGPT creator OpenAI.
Now, right now, demand for AI chips is off the charts due to the strong interest in generative AI globally. And this was reflected in Nvidia’s recent first-quarter results. Not only did the company easily beat top- and bottom-line estimates, but it also provided Q2 guidance that was miles ahead of forecasts. Thanks to demand for its AI chips, Nvidia said that it is expecting revenue of around $11 billion for the current quarter – more than 50% higher than Wall Street’s forecast at the time.
On the back of this guidance – which sent the stock up to record highs – analysts have been scrambling to increase their share price targets for Nvidia. A number of brokers, including Bank of America, JP Morgan, and Evercore ISI have lifted their price targets to $500. These targets indicate that the brokers see further upside ahead.
Will NVIDIA reach $1,000?
And make no mistake, the growth potential here is enormous.
Nvidia CEO’s Jensen Huang believes that in the years ahead, a trillion dollars of installed global data centre infrastructure will transition from ‘general purpose’ to ‘accelerated computing’ as organisations race to apply generative AI into their business processes. If he’s right, this company is set for massive growth.
Nvidia is not just an AI story though. This is a company that is at the heart of many high-growth industries including:
- The metaverse – Meta Platforms is building its metaverse with Nvidia chips. Meanwhile, Nvidia actually has its own version of the metaverse called the ‘Omniverse’.
- Self-driving cars – Nvidia offers an end-to-end platform for autonomous vehicles.
- Video gaming – Nvidia remains a leader in the gaming industry thanks to its high-power GPUs.
Overall, the company’s future looks very exciting.
Is NVIDIA Overvalued?
Now, there are plenty of risks to consider here. One is the fact that other chip designers are desperately trying to capture market share from Nvidia.
Advanced Micro Devices (AMD) is one such company. It recently partnered with Microsoft to develop high-powered AI chips.
Another risk is the stock’s volatility. It’s worth stressing that Nvidia is an extremely volatile stock. Throughout history, it has regularly had pullbacks of 30% or more. It’s therefore not a stock for those who prioritise capital preservation.
Overall, I’m very bullish on the chip stock, however. I think it’s still worth buying today.
Having said that, after its recent rise, there is always the chance of a pullback in the near future. So, I think the best approach here is to average into the stock over time.
